Education

Money Topics They Don’t Teach in High School, but Should

June 3, 2014 By Danielle Warchol 5 Comments

students sitting at high school graduation in graduation gowns

One of the biggest disgraces of the school system is that it often fails to teach basics that we all need for everyday life once we graduate. A prime example of this is basic personal finance. If we could get more students to graduate from high school with a basic understanding of how personal finances work so they could make good financial decisions with their money, there would be a lot less money problems in the United States. It’s a wonder the subject isn’t emphasized more in the classroom. Here are some financial topics that they don’t teach in high school, but they definitely should:

Budgeting

In high school, most teenagers don’t have to worry about saving their money or budgeting for rent, groceries, or bills. If they work, they usually only work so they can spend money at the movies or the mall. However, learning how to budget is an important financial topic that should be taught, as it’s probably one of the most important life lessons. Knowing how to allocate your finances each month will save you a lot of frustration. It will also help you figure out how much money you have to spend.

Loans

As a high school or college student, the idea of taking out a loan seems easy. Moreover, loans seem like free money. Of course, they quickly learn that you need to pay loans back and that loan collectors will relentlessly hound you for payments. If high school students don’t learn about loans in high school, then they definitely don’t learn about interest rates and repossession, two negative consequences that result when a loan is not paid off in full.

Insurance

Insurance is a topic that briefly comes up in high school, but is rarely expanded on. High school students know that they should buy car insurance if they drive, but they’re never given a more detailed explanation about what insurance covers. It’s important to teach them about all types of insurance, from renter’s insurance to car insurance to life insurance. It’s also important to teach them how to choose a good insurance based on their specific needs and financial situation.

Debt

Debt is a scary word, especially to a high school student. However, it’s necessary to teach them about it so they can avoid falling into debt later in life. With college tuition at an all time high, it’s easy for a teenager to fall into debt. This financial topic should be taught in school in order to prepare students for the future and to teach them about managing money.

Credit Cards

Getting a credit card can seem exciting. You suddenly have access to an easy way to buy items now and pay for them later. It’s so easy to swipe a card and not worry about paying for it until the bill arrives in the mail. This is a trap that many high school or college students fall into, and it’s a trap that they desperately need to avoid. Teaching courses around credit card management would help teach high school students about credit card debt and managing their purchases.

Credit Scores

Credit scores rarely make the cut when finance topics come up in high school. They should, as your credit score is one of the most important aspects of your financial profile. It determines what credit cards or loans you can apply for and how insurance companies or rental agencies view you. It can even impact you getting a job. Gaining credit and keeping a high credit score is something that needs to be taught early on. It’s very easy for someone to make their credit score plummet, but it’s incredibly hard to raise a low credit score.

Interest Rates

Interest is often discussed in math class at some point over the high school curriculum, but it’s rarely discussed in terms of real life situations. In financial terms, it’s important to discuss how interest rates work and affect both payments and statement balances. It’s especially important to teach high school students the importance of paying off a balance to avoid high interest rates, which usually occur on loans and credit card payments. Interest rates are one of the biggest wastes of money and one that should be avoided if possible.

Retirement Savings

Naturally, a high school student isn’t going to be thinking of retirement savings. At 18, why would they be thinking of something that’s at least 50 years away? However, they should be taught about the benefits of saving for their retirement. A great way to broach the topic is to tell them how much money they’ll be making by investing in a 401K. For instance, if you put in as little as $50 a week from your paycheck, you’re saving a bit more than $200 a month and $2,600 a year. Over the course of 50 years, you’ll have $130,000. If your employer matches your 401K contribution up to a certain amount, so this means you could have as much as $260,000 not even counting interest. With interest, you would have well over $1 million for a mere $50 a week.

Stocks and Investments

A lot of high schools actually teach students about stocks and investments. Schools that don’t have this in their curriculum should consider it. Stocks and investments are a great way to earn additional money. Of course, it’s an activity that needs to be carefully researched, but it’s a financial topic that students should be aware of.

Taxes

Most high school students know about taxes. They’ve either had to pay income taxes or have heard their relatives complain about paying real estate, income, or federal taxes. But most students don’t realize how taxes affect them. When they get their first job, they tend to forget that their hourly or yearly salary is presented pre-taxes. Learning about taxes is an important step in helping them budget and one that should be taught so they can better manage their money.

(Photo courtesy of Nic’s events)

The Relationship Between Self-Improvement and Personal Finance

January 9, 2013 By Jennifer Derrick Leave a Comment

With New Year’s just past and most people still in the honeymoon phase of their resolutions, it’s worth a brief look at how many self-improvement activities benefit your finances, and how studying one area can have a positive impact on the other.

I’ll confess to being something of a self-improvement junkie. Not because my life is in desperate need of repair, but because I find subjects like the relationship between the brain and the physical body interesting. It’s also interesting to see what new twists authors come up with on age old topics like weight loss and organization. I’ll trawl the library shelves and pick out several titles to take home at once and if there’s a Kindle freebie, I’m on it. I’ve found over the years that all this self-improvement reading has often benefited my finances, even if only indirectly. Here are some examples:

Weight Loss

It’s no secret that losing weight benefits your health which means less money spent at the doctor’s office. Your finances also benefit in other ways, including not eating out and limiting snack and expensive over processed food purchases.

Organization

When you’re more organized, not only do you have less clutter to wade through but your organization techniques tend to spill over to your finances. It’s much easier to deal with your bills, taxes, and accounts when everything is organized and easy to access.

Education

If you pursue your education, you’ll become more employable and possibly make more money. If you educate yourself about money, you’ll be more successful at managing your money.

Career Help

If you’re not in a satisfying job/career, you probably won’t make as much money as if you were working in a field you love. Passion counts for a lot when it comes to work.

Other self-improvement activities like quitting smoking (saves you money and medical expenses), stress reduction (another medical money-saver), creating better relationships (open communication about money is necessary to a financially healthy marriage), and dumping emotional baggage (everything becomes easier when you’re not constantly thinking about “issues”) can benefit your finances. And, of course, there’s a whole area of the self-improvement market dedicated to helping you sort out your issues with money and helping you to become debt free. Often even if you don’t set out to directly impact your finances, applying some self-improvement techniques to your life ends up saving or making you money.

The reverse is often true, as well. If you set out to fix your finances, you may find yourself improving other areas of your life. Let’s say you need to save money so you decide to quit smoking. Big money-saver. Or, you need to make some money so you start studying entrepreneurship so you can start a business. Not only might you open that successful business, but you might learn something about confidence, presentation skills, and improving your public appearance. Or maybe you decide to take an investing class at the local community college and suddenly you find yourself loving finance. It might lead to a career change which could make you a happier person.

Finances and self-help are intertwined. If you set out to study and act on one, you’ll likely find yourself getting better at the other one. So, whether your New Year’s resolution is to lose weight, deal with your relationships, or get a better job, don’t hesitate to trawl to self-help shelves at the library or bookstore and dive into your self-improvement project. Who knows? You might just find yourself on the way to a better financial life, too.

(Photo courtesy of Matt McGee)

10 Things That Don’t Seem To Be About Money, But Really Are

August 9, 2012 By Danielle Warchol 4 Comments

Many people fail to realize that almost all aspects of our lives are intricately weaved together with our finances, but it’s crucially important to understand that even things that don’t initially seem to have anything to do with finances or money management can have a great impact on these areas. By understanding that almost every decision that we make has financial consequences, you place yourself in a position to save money where you once wasted it without even realizing it. Here are a few of those areas that may not seem to have anything to do with money, but upon deeper reflection actually have a large impact in this area:

Stress

Almost everyone has been stressed out about something during their lives. Some of us deal with more stress on a daily basis than others. While stress can be caused by a variety of things, it’s often caused due to concerns about money. After all, which of us haven’t been stressed about our lack of savings, paying bills, or saving for retirement? Money is always a constant concern and it’s no wonder that stress is usually about money – even when it appears that the reason behind stress is something completely different.

Time

The saying “time is money” is definitely true. Time is a valuable thing and wasted time means wasted money. What this boils down to is people who squander opportunities to earn money – or spend less – in favor of being unproductive. How many of us could do an extra job for an extra paycheck but choose not to because we would rather hang out or sit in front of the TV? So, really, Benjamin Franklin was right when he said that “time is money”.

Relationship Breakups

More people than ever before state that the biggest reason their relationships fail is because of money. If one or both people in a relationship are barely breaking even, money is going to be an issue. It might not seem like it at first, but when you get down to the root of the problem or the arguments, you can bet that it’s going to be about money.

Health Problems

Just as money is often a factor behind stress, it’s also a factor behind poor health. Of course, money isn’t going to give you a disease, but constantly worrying about money will take its toll on your mental and physical wellbeing. If you’re worn down by your financial troubles, then you’re going to be more prone to getting sick.

Diet

Obviously, your diet is influenced by your financial status. Of course, on the surface level you’re going to worry about paying for groceries or your ability to go out to a restaurant is determined by how much money you have in the bank. But on a deeper level, your choice of food may be subconsciously influenced by money. For example, you might choose a generic brand over a well-known one because it’s cheaper. You might automatically skip organic produce because you don’t want to pay more money for it.

Education

Unfortunately, education has become about money. Sometimes it’s about sending a child to a public or private middle or high school. Sometimes it’s about whether or not someone can afford to go to a specific college. Additionally, instead of education being about obtaining knowledge and expanding one’s mind and skills, it’s become about obtaining a degree in order to obtain a job with a higher paycheck.

Habits

Most habits stem from someone’s financial status or awareness of money. This can range from having expensive clothing tastes to eating out every night to spending money twice a day for coffee. Or it could be obsessing about your budget and minimizing the amount of money you spend. It can even be something as simple as having the bad habit of leaving the light on after you leave a room, which makes your electric bill more expensive.

Emotions

Emotions are often tied to money. You’re happy when you’re not worrying about money and pleased when you can spend money without concern. But you’re angry when you don’t have any money and stressed when you’re in debt. Our emotions are tied to our financial stability. Even when money isn’t the first thing on our mind, it still affects our mood.

Entertainment

How you entertain yourself is definitely about money. Whether it’s going out to the movies, watching a sports game with friends, or staying home reading or watching TV, money is definitely involved. Your entertainment options are definitely affected by your budget and sometimes certain options aren’t feasible because you don’t have the money to spend. Even the decision to buy a DVD to watch repeatedly instead of paying for a movie channel on TV or Netflix is a decision that’s based on money and convenience.

Sleep

Naturally, sleep can be drastically tied to money. As with our emotions, health, and stress issues, the state of our finances can affect how we sleep at night. Are you worried about being able to pay your rent? You’re probably going to toss and turn all night. On the other hand, if you just got a promotion and a raise, you’re probably going to sleep wonderfully. Like most things, the more reassured you are, the better you feel. So, the next time you’re having a bad night’s sleep and are also having financial issues, you’ll know why you can’t get that rest you deserve!

(Photo courtesy of stevendepolo)

Learn Without Leaving Home

October 22, 2010 By Jennifer Derrick Leave a Comment

I’m a big believer in lifelong education. I don’t think you need to stop learning just because you got a diploma. I encourage people to learn about finance because it’s not something that many people learn in their first pass through school. You may take an economics course in college that focuses on theory, but practical financial information isn’t generally taught in school. The more you can learn about money, business, and investing, the better off you’ll be when it comes to managing your money and career.

Education helps your finances in three ways. First, you can choose to learn about personal finance specifically. You can take courses in investing, retirement planning, economics, and basic accounting. There are also courses in coupon use, estate planning, debt management, and saving for college. If you need to learn something about personal finance, there is usually a course that covers it. These types of courses will increase your financial literacy and enable you to manage your money better. When you know more about finance, you can make wiser decisions about your money.

Second, you can take courses that help you start your own business. Business accounting, tax planning, business law, and courses on how to open and operate a new business can get your dream venture off the ground. Many people dream of starting their own business, but falter when it comes time to actually run the business. Studies show that wealth is more easily generated when you own your own business, so if you have a great idea it’s best to figure out how to get that business going.

Third, you can learn new skills. When you learn new skills, you increase your earning potential. The more you know the more valuable you become to a potential (or current) employer. You can increase your computer skills, or learn something entirely new like graphic design. You can earn a certificate that is valued by your profession. More skills also translate into other sources of income. Maybe you’ve always wanted to be a photographer. Take some photography courses and before long you can supplement your income from your day job with a side job as a photographer.

The really good news is that, thanks to advances in online learning, you can learn all of this on your own time without leaving home. Many community colleges/extension programs now offer many of their courses online. Major universities even have programs where you can earn an entire degree while barely setting foot in a classroom. With courses starting all the time, there’s really no excuse anymore for not getting the education you need to improve your financial life.

Many community colleges offer their programs through ed2go.com. When you visit ed2go.com you can browse the course catalog and then either look for courses offered through your local institution or enroll directly through ed2go. Note that if your institution offers the course you want, it may be cheaper to enroll there. My local community college offers ed2go’s courses for an average of $87. If I enrolled through ed2go, the cost jumps to $139. However, if your local school doesn’t offer what you need, $139 is still a good deal. Also check your community college site to see if they offer courses not offered by ed2go. You might find something specific to your region taught by a local expert.

How useful is this, really, you ask? Just a quick perusal through ed2go.com and my local community school’s website yielded the following possibilities:

Business Law for the Small Business Owner
Debt Elimination Techniques That Work
Real Estate Investing
Stocks, Bonds, and Investing
Where Does All My Money Go (Budgeting)
Keys to Successful Money Management
Resume Writing
12 Steps to a Successful Job Search
Employment Law Fundamentals
Start Your Own Arts and Crafts Business
Marketing Your Business on the Internet
Start Your Own Small Business
Start and Operate Your Own Home Based Business
Income and Risk Management for Pre-retirees and Retirees
Introduction to Financial Survival in Today’s Economy

Plus many, many more. There are a ton of courses on various professional certifications, software applications, and career training. There are also courses on various skills including languages, photography, catering, cooking, health care and writing that can help you save or make additional money.

Aside from what you learn in a course, you also benefit because you meet new people. Even in online environments you interact with other students and teachers through message boards, IM, or live chat. These people may make good contacts for later opportunities or they may have contacts that you can use now. They may have ideas you hadn’t considered or special skills that you can use in your new business.

If you need to know something about finance or if you need to improve your skills, there really isn’t any excuse for not learning what you need to know. Online courses are reasonably priced, open to all, and the work can be done when you have some spare moments. You can learn what you need to know while you sit at home in your pajamas and eat dinner if you want. That beats schlepping to a class across town.

Your Education and Work History Only Gets You in the Door

June 10, 2010 By David G. Mitchell 6 Comments

I was scheduled to have coffee with someone tomorrow but he had to reschedule because he has a telephone interview. I am always happy to reschedule a meeting because another person has an interview or an opportunity to meet with a client. I really believe that every person who finds a new job or a better job or another client is helping to get us out of the recession just as much as the employers who are hiring and the clients who are looking for help.

Just as I am encouraging to job seekers, I also feel sorry for a lot of them. During the heady full steam ahead days before the recession, ability and reputation alone were often enough to advance a career. Now employers have the time and the inclination to pay more attention to recruiting. After all, from a hiring perspective, it is a buyer’s market.
Looking back on most of all of the jobs that I have gotten since I entered the work force, it has rarely been the case that I was hired because of my skills or achievements. Those things can get me in the door for an interview but, in reality, there are a lot of similarly qualified people in the USA. Although I like to think that I am a bit better than anyone with whom I may be competing, my abilities really shine only after I have started working. On paper, they probably sound like all of the other guys who are pursuing clients or seeking jobs.

At a very fundamental level, each time I have been hired for a new job, it has been because of some intangible connection that I made with the person doing the hiring. For example, the first job that I got after I graduated from college I got because I was carrying a copy of Foreign Affairs Magazine when I went for the interview. At the time, I was not sophisticated enough to realize that it might not look all that professional to carry reading material to an interview, but thank goodness for that! After I had gotten the job (which paid me about $30,000 in 1989 — not bad for a job that required no nights or weekends). Had I not been carrying Foreign Affairs, I might very well have found myself in a much less lucrative position in the year before I went to graduate school.

After I got out of graduate school, I got a very good job. When I received the offer and had been on the job for a few weeks, I asked the person who interviewed me why I had been given the job. She told me that she had such a good time talking to me that she thought I would add a lot to the team spirit at our office. The fact that I had excelled academically was not a factor. It was all personality.

A few years later, I moved on to another job that would give me a better quality of life. A similar interview process echoed my earlier experience. When I received my job offer, my new boss told the headhunter that I was using that she found me very amusing because I could relate all sorts of unusual job experiences to my new position. She loved my creativity. Again, my academic and professional history got me an interview, but my personality got me the job.

Today I met with another professional. We enjoyed a 90 minute conversation that had almost nothing to do with either of our respective businesses. By the end of the conversation, he was eager to refer business to me and I was eager to refer business to him. We built a quick rapport and a fundamental trust of each other. As a result, we walked into the coffee shop as acquaintances who had spoken for five minutes while walking our respective dogs. We left the coffee shop as friends with plans to get together with our wives for a night of music and conversation.

Whatever your life’s achievements may be, they can only advance you so far. Who you are is ultimately far more important that what you can do. After all, there are probably a lot of people who can do what you do, but there is only one you. Always put your best foot forward and you can’t go wrong.

What do you emphasize when you are networking or interviewing? Do you make the conversation about you or do you let the real “you” come through and try to make a connection with the people you meet? Do you feel that you need to sell yourself to other people or are you a “product” that sells itself?

A Perfect Game: It’s Time To Break Down Barriers

May 1, 2009 By David G. Mitchell 9 Comments

Recently, a twelve year old New Jersey Little League pitcher pitched a perfect game. For those of you who are not baseball fans, a perfect game occurs when a pitcher retires every batter in a game, without any of them reaching base. It is one of the rarest feats in baseball and it is a game that the pitcher will never forget.

The Little League pitcher threw out the ceremonial first pitch in a professional game featuring the New York Mets and the Washington Nationals. Moreover, the pitcher has appeared on weekday morning television shows and even been the subject of conversation on ESPN.

Yes, even for kids, a perfect game is a big deal. That said, several perfect games are thrown every year in Little League baseball games. Why, you might ask, is this particular perfect game getting so much attention? In this case, the pitcher was twelve year old Mackenzie Brown – a girl playing a game that is usually reserved for boys. More importantly, she is a girl who – for at least that one game – “put a real hurting on the boys” (as one of my old coaches would have said).

Young Mackenzie Brown is not the first female to challenge males in sports that are usually dominated by men. Manon Rh